Post on 23-Apr-2018
Hello!
Our mission is to find and nurture the next generation of leaders whom will make a lasting values-based impact by solving mankind’s most pressing problems, and to build the firm which attracts the finest educated professionals by constantly embracing the costs of our values.
It takes us over one year to plan, execute and develop each training program study. Each study is curated and crafted by former McKinsey, BCG et al senior partners to help you understand, follow and replicate consulting engagements so you may confidently acquire the skills taught.
Great care is taken to make the training as realistic as possible while providing compelling and captivating narrated episodes to improve your experience.
This map is the overview and logic behind the Corporate Strategy & Transformation Engagement training program. This training program is only available to FC Insiders.
By following the arrows one can track the evolution of a strategy engagement. The numbers correspond to the videos within our StrategyTraining.com website which is only available to FC Insiders.
Please note that the only way to become an FC Insider, and access all the content on StrategyTraining.com, is to become a Premium member for 6 months, in good standing, on the Firmsconsulting.com website. The majority of our content is only available to FC Insiders.
Thank you for giving us this opportunity to earn your trust.
Best wishes,Kris SafarovaPartner
Accountability of stream is not outlined
Accountability of the communications and mobilization stream
1. How do I retain the privilege of serving this client?
25 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE
Strategy Training Corporate & BU Strategy: Power Sector
SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
How do McKinsey and BCG partners write successful proposals?
The partner could use two styles depending on his relationship with the client and the nature of the work proposed.
This section shows the style used for new / competitive clients.
Initial call with client to discuss the challenge
Feedback from RFP committee & CEO
Initial proposal to client
View the revised proposal with the strategy additions
Diagnostic phase: see 1st
proposal above
How do I communicate a disagreement with the RFP?
Org. design, skills, comms & transformation: see 1st proposal above
Design the strategy analyses stream charter and approach
Corporate strategy key questions
Business unit strategy key questions
Value analyses and business case key questions
What is the corporate strategy process?
Trends and discontinuity analyses
Value chain analyses
Scenario analyses
Prioritize business units
Analysis 3: EVA and EV
Design investment matrix
Analysis 1: cost of funding the change
Watch the overview video of this study
How is a transformation study different from corporate
strategy?
View the letter sent to the CEO to explain the changes
Corporate Strategy vs. Other Strategy: critical differences exist
Why the usual strategy structuring approach fails in corporate strategy?
What is the overall process for corporate strategy studies?
Why does the company exist?
What do shareholders want and need?
What is happening with the market and/or competitors?
What are the resource constraints of the company?
How do I generate the strategy storyboard
How do I validate the strategy storyboard?
Implications for structuring corporate strategy studies?
Analysis 2: profit from the core
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View adjusted proposal strategy timelines
Tips and guidelines for corporate strategy proposals / RFPs
Visioning workshop Assess alignment with new corporate strategy
Develop investment strategy
Feedback from the CEO and RFP committee
2. How do I staff and structure this study?
5days
Large corporate strategy transformation studies are not run like a typical 5-person case analysis.
These large studies are both McKinsey and BCG’s specialization. Learn how studies with 15 to 20 consultants are staffed, managed, governed and completed to the highest standards.
How is the study structured and phased?
How is this study staffed?
How is this study governed?
Will industry experts be used on this study?
Why do associates thrive on transformation studies?
How are the major milestones developed for this study?
Why do analysts perform worst on transformation studies?
Why do engagement managers struggle on transformation studies?
What should be your career strategy on a transformation study?
Should large studies have a name and / or logo?
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23 26
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7
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Week 1: 17 April– 23 April 5 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
What should be the structure of the workshop?
What are the next steps from the workshop and why do they matter?
What is discussed in Internal Update Meeting 1?
Why is the overall project structure still being discussed?
Why are project values so important for this meeting
Why interview Empire Energy & Empire Int. leadership?
Why have an initial workshop with Empire Int. Supp. Services team?
How are the 2 week objectives built into the focus interview?
How should the project room be laid out?
Should clients be allowed in the project room?
May I see the focus questionnaire?
Why does this study begin
haphazardly?
What does Day 1 look like on this study?
Would you like to recap key insights from the study proposal?
Strategy Training Corporate & BU Strategy: Power Sector
May I see the feedback from the focus groups?
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Week 2: 24 April– 30 April 5 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Who does the communications
work if the partner is presenting?
Develop comms. plan and rationale for client executives
1st Study Steering Committee Update: Introduction
Objectives
Focus interview feedback from executives
Strategy feedback
Skills feedback
Structure feedback
Culture feedback
Scope clarification Strategy Analyses
Balanced Scorecard & Transformation Map
Value Analyses
Organization Design
Progress Update Value Analyses
Timeline
Key Assumptions
Value Analyses Findings
Financial Strategy Matrix
Explain the importance of strategic mobilization to the client
Prepare Empire Int. CEO letter for his management team
Prepare study update Empire Int. CEO will use for Empire Int. board
Prepare study update Empire Int. CEO will use for Empire Energy board
What should be my strategy for
this presentation?
Would you like to recap the key insights from week 1?
What should my pre-presentation
strategy be?
Do I require a decision from this meeting?
Strategy Training Corporate & BU Strategy: Power Sector
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Ready for the 1st CEO update call?
Organization Design
Close Clarified next steps
Deliverables completed
Resourcing of study
Next steps from this meeting
Approach
Decisions / Questions to be Answered
Key Criteria
Management Skills Analyses
Approach
Timeline
Communication Approach
Working with lower management
How does the partner provide feedback to the strategy team?
What is the agenda for the 2nd Internal team meeting?
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Week 3: 1 May– 7 May 5 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
How should the training be run and who should attend?
Why set up change management training for the client joint teams?
Objectives, ground rules and expectations setting
Warm-up and terminology
Background to change management
The emotional cycle of change
A model for organizational change
A model for personal response to change
Critical success factors for change management
Where are clients on the emotional cycle of change?
Where do client’s see themselves on the cycle and why?
Where are the clients’customers on the cycle and why?
How can we deal more effectively with change?
Why is client training such a significant part of this study?
How in-depth must the training
be?
Updating the Labor Unions for the 1st timeWould you like to recap
the key insights from week 2?
What are the next steps from the training?
Strategy Training Corporate & BU Strategy: Power Sector
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What is the agenda for the 3rd Internal team meeting?
Week 4: 8 May – 14 May
Introducing the CEO to the method to calculate benefits
Revise the comms plan to ensure faster sign-off
What is the agenda for the 4th Internal team meeting?
What feedback is provided from the union meeting?
What feedback is provided to the strategy team from the training?
Would you like to recap the key insights from week 3?
Do I require a decision in this meeting?
Ready for the 2nd CEO update call?
H2 to ensure Empire Int. executives do not miscommunicate?
MOST CRITICAL STEP IN THE STUDY: NEXT 3 PAGES
Empire International Executive Visioning Workshop: explained in the next 3 pages
In this critical workshop we will teach you how to weave together insights from 5 areas to finish the two most important steps of a corporate strategy study: isolating the key question and choosing a market to pursue
See how we integrate detailed analyses from:5 case studiesDetailed market and trends analysesValue chain and profit pool analysisScenario planning
This step teaches you how to develop critical insights when detailed numerical analysis cannot be used
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PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Strategy Training Corporate & BU Strategy: Power Sector
Ready to understand the visioning workshop better?
Corporate strategy is difficult because it requires the team to determine the market’s trajectory and find a profitable part of the value chain where the client should operate.
The challenge is to use a process which can bring order to the mountain of input material.
Use the proposal to determine the stream objective
How does the corporate strategy fit into the entire study?
What is the overall approach for this stream
Why doesn't one elegant analysis provide the answer?
Why don’t we use SWOT analysis?
Why don’t we use Porter’s Five Forces?
Does this analysis replace a business plan?
3
2
1This workshop is a critical tool/step pulling together all the elements of the corporate strategy process. Much is taught in the videos that follow and it is useful to go through everything sequentially and slowly.
Try to extract the broader principles versus the analysis results for this particular study. No two studies will have the same results, even within the same sector.
Blue bars, in this section of the study, are steps in the workshop. White perforated bars are input to the workshop
What is corporate strategy?
How does the visioning workshop lead to the corporate strategy?
What is the logic of the overall process?
How would you pull all the pieces together?
What is the objective of the overall workshop?
Must the client always arrive at the answer themselves?
What happens if the wrong market/segment is selected?
Lets walk through a typical visioning workshop?
What are the explicit objectives of each part of the workshop?
What are the checklists milestones / early warning signs?
Should the same logic + approach be used for all corp. strategy studies?
Must a workshop format always be used?
How would you simplify the process for a lack of time / resources?
Why conduct the workshop so early?
Is this the entire corporate strategy process?
If not, what is there to come?
Whom should be invited?
How important is the skill to facilitate the workshop?
Who facilitates?
Who makes the final decisions?
How should the room / event be organized?
Where should the workshop be held?
What happens if the client arrives at a different conclusion?
First understand the technical logic…
..followed by the supposed limitations…
…to understand the workshop format…
…and operational details….
…before going through the content of this workshop. Without understanding the process, it is difficult to appreciate how the workshop was run and the decisions made.
Recap the visioning workshop plan
Host visioning workshop
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BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Strategy Training Corporate & BU Strategy: Power Sector
2nd part of the workshop: deciding where EI will compete
1st part of the workshop: more of an input presentation
What is the single biggest mistake made in corporate
strategy?
Brainstorm the major issues in the sector
Separate and cluster uncertainties
Extract key lessons from the case studies
Identify the main trends in the sector
Rank and expand uncertainties
Build scenarios of main uncertainty clusters
Insights from the customer value chain
Insights from the client value chain / capabilities and assets
Summary and purpose of case studies
ABB case study
RWE case study
ENEL case study
US market structure case study
Six major trends in energy
Energy markets issues
Supply issues summary
Demand issues summary
Volatility of supply
Solutions and trends in supply
Pricing sensitivity
Energy demand
Green energy
ESB International case study
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Environmental pressure
Reduced cycle times aka volatility in business models
Disaggregating value chains
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89Key sector-wide emerging issues
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What is a value chain?
Why is it important in corporate strategy?
Best-practice guidelines for actual studies
Learn how to build a value chain from 1st
principles
Questions answered in this value chain analysis
Why is there no Gx, Tx and Dx value chain?
Why is the value chain built non-industry specific?
Review the value chain built for the study
Mapping EI within the value chain
Valuing the value chain
Mapping competitors within the value chain
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Role of diversification
Impact of globalization
Liberalizing markets
Changes at OEMs
Analyzing the domestic energy market
Overview of the local market
Overview of the client’s position in the local market
Impact on 4th generation reactors – not for circulation beyond Board
Impact on Telco skunk works – not for circulation beyond Board
Test the corporate strategy recommendations
Implementing the strategy recommendations
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Explicitly outline implications of visioning workshop agreements
Executive summary – for CEO and Board
Details of implications –not for circulation beyond Board
Review visioning workshop output
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5352
Capital expansion program
Demand side management
Renewables plan
Reserve margin
Regulators
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What causes value to move up or down the value chain?
What we now know and don’t know
Should EI continue expanding outside it’s core?
49
41Design & Build decisions
Operate decisions43
42
Ranking EI’s options?
Did we achieve the decisions sought?
Maintain decisions
Business development decisions
Primary Energy decisions
Telecoms
Construction model
EI capability gaps
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51
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71
Property decisions48
Lessons from the Visioning workshop
59
Week 4: 8 Time to understand the engagement team
What is the agenda for the 4th Internal team meeting?
Why doesn't one elegant analysis provide the answer?
Why don’t we use SWOT analysis?
Why don’t we use Porter’s Five Forces?
Does this analysis replace a business plan?
What is corporate strategy?
How does the visioning workshop lead to the corporate strategy?
What is the logic of the overall process?
How would you pull all the pieces together?
Should the same logic + approach be used for all corp. strategy studies?
Must a workshop format always be used?
How would you simplify the process for a lack of time / resources?
Why conduct the workshop so early?
Is this the entire corporate strategy process?
If not, what is there to come?
Whom should be invited?
First understand the technical logic…
..followed by the supposed limitations…
…to understand the workshop format…
…and operational details….
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8
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Week 5: 15 May – 21 May 5 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
2nd Study Steering Committee Update
Objectives
Value analyses Progress update
Current EVA performance
Projected EVA performance
Why current and projected EVA performance differs?
Why is the value analyses such a
major part of this update?
Balanced Scorecard
EVA performance of the subsidiaries
EVA workshop
Organization design
Management skills analyses
Communication and mobilization
What is the agenda for the 5th Internal team meeting?
Is value analyses a separate stream
or a sub-stream of strategy?
Would you like to recap the key insights from week 4?
Do I require a decision from this meeting?
Do I need a pre-presentation
strategy for this meeting?
Next steps from the Steering Committee Meeting
Ready for 3rd CEO update call?
Strategy Training Corporate & BU Strategy: Power Sector
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Week 6: 22 May – 28 May 5 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
1st internal team only meeting to encourage project integration
3rd Study Steering Committee Update
Review study governance process
Strategy stream
Value analyses stream
Organization design stream
Management skills analyses stream
Do I require a pre-presentation
strategy?
Agree communications plan after recent resistance
1st OPCO Update Introduction
The transformation challenge
Building an alignment map to encourage integration
Review process for filling interim operational roles
Stream updates
Overview of the study
Stream Updates
How to communicate to and mobilize the organization discussion
Close
Next steps from 1st
OPCO Update
Are the objectives different for
Steercom and OPCO?
Develop letter for Empire Int. CEO to appoint interim managers
Why is this letter so important?
Would you like to recap the key insights from week 5?
Do I require a decision from this meeting?
Strategy Training Corporate & BU Strategy: Power Sector
Objectives
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What is the agenda for the 6th internal team meeting?
Week 7: 1 June – 7 June
2nd team only meeting to encourage project integration
Action plan from the meeting
Update information pack for client executives
Plan implementation design workshop
4th Study Steering Committee Update
Taxes & Systems Scope Clarification
Objectives
Investor relations update
Update on interim management positions
Stream updates Strategy Analyses Stream
Corporate Strategy Sub-Stream
Business Unit Strategy Sub-Stream
Value Analyses Stream
Organization Design Stream
Management Skills Analyses Stream
Communications & Mobilization Stream
Summary and next steps
What is the agenda for the 7th internal team meeting?
How are tax, audit and IT issues
taken into consideration?
Generate transformation maps from workshop
5 days
Would you like to recap the key insights from week 6?
Do I require a decision from this meeting?
Do I require a pre-presentation
strategy?
Ready for 5th CEO update call?
Balanced scorecard Stream
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Week 8: 8 June – 14 June 5 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Develop Empire Int. CEO letter to invite managers to workshop
Plan workshop for managers of client
5th Study Steering Committee Update
Objectives
Value analyses update
Support Services Macro-Structure
Setting up a Chief-of-Staff for the Empire Int. CEO
Next Steps
Organization Structure Problems
Function of Support Services
Initial focus of the study
Recommended Structure
Implementation Challenges
Develop Empire Int. CEO letter appointing interim managers
Develop poster 1 to be used around the company
Develop poster 2 to be used around the company
Develop poster 3 to be used around the company
Develop comics to be used around the company
What is the agenda for the 8th internal team meeting?
How will the partner and manager prepare their mid-point feedback?
How will I coach or be coached on poor performance?
What goes into the Empire International CEO pre-presents?
Would you like to recap the key insights from week 7?
Do I require a decision from this meeting?
Do I require a pre-presentation
strategy?
Setting up the 6th CEO update call and pre-present
Strategy Training Corporate & BU Strategy: Power Sector
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Week 9: 15 June – 21June 5 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
1st Full Update to the Empire International CEO
Objectives
Progress to Date
1-slide summary of the findings
Organization Design Stream
Balanced Scorecard Stream
Overall structure
Support services division
Globalization division
Development division
Level 1 Scorecard
Level 2 Scorecard
Strategy Stream Today’s focus for the presentation
Case Study of ABB and its failed expansion strategy
Recommendations
#1 : Return to the core energy business
#2: Focus on Design, Build. Ops, Maintenance of Gx, Tx and Dx
#3: Keep adjacent businesses with high market shares
Why are there so few pre-presents
for this study?
What is the protocol for
presenting to a CEO?
Would you like to recap the key insights from week 8?
Do I require a decision from this meeting?
Do I require a pre-presentation
strategy?
Strategy Training Corporate & BU Strategy: Power Sector
CFO services support function
Internal services function
Setting the context
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Value Analyses Stream High Level Findings
Enterprise Value Vs. Economic Value Added
Analyzing the businesses
Overall business case plan
Management Skills Analyses Stream
Skills Analysis
Competency Process Review
Communication & Mobilization Stream
The Transformation Challenge
Plan for next update
Next Steps from update with Empire International CEO
What is the agenda for the 9th internal team meeting?
How team receives feedback about the Empire Int. CEO update?
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Week 10: 22 June – 28 June 5 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Prepare detailed implementation comms and mobilization plan
6th Study Steering Committee Update -Implementation
Objectives
Introduction
Generic Management Competencies
Initial Implications of Competencies
Change Management Attributes
What should be the strategy for
this update?
# 1: Change management plan
# 2: Communication and implementation plan
# 3: Detailed communication rollout
# 4: Strategic mobilization plan
Initial Implications of Attributes
Value Analyses Feedback
Business Case Disposable portfolio process objectives
Estimating the new division’s capital requirements
1st Draft of the disposable portfolio
Implementation Objectives
Implementation Plan
Key Challenges What is the agenda for the 10th internal team meeting?
Would you like to recap the key insights from week 9?
Do I require a pre-presentation
strategy?
Do I require a decision from this meeting?
Strategy Training Corporate & BU Strategy: Power Sector
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Executive Band Management Skills Assessment
Week 11: 1 July – 7 July 5 days
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Why is this meeting so important?
Implications presentation for the Empire Int. CEO’s eyes-only
What is the agenda for the 11th internal team meeting?
What is a good outcome from this pivotal meeting?
Week 12: 8 July – 14 July
Take a team temperature check
Prepare Draft Implementation Plan
Objectives of the implementation
Overview of implementation plan
Six streams of work
Staffing options for the implementation phase
Why is the implementation plan prepared
now?
Governance & BMP Charters and Timeline
Strategy Realization Charters & TimeLine
Governance & BMP Charter and Timeline
Service optimization Charter and Timeline
Internal services alignment Alignment Charter and Timeline
Realize invest / divest decisions Charter and Timeline
Business Unit Strategy Charter and Timeline
Why is the temperature
check done so late in the study?
Would you like to recap the key insights from week 10?
Would you like to recap the key insights from week 11?
Why is the temperature
check done so late in the study?
Why is this meeting so important?
Who sees the implementation
plan?
Strategy Training Corporate & BU Strategy: Power Sector
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Human Asset Optimization Charters & Timeline
Systems Alignment Charter & Timeline
Transformation Enablement Charters & Timeline
HR Charter & Timeline
Job Analyses Charter & Timeline
Management Skills Development Charter & Timeline
Comms & Mobs Charter & Timeline
Strategic Mobilization Charter & Timeline
What is the agenda for the 12th internal team meeting?
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Week 13: 15 July – 21 JulyMonday: CEO Workshop
1 day
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Agenda + Objectives of the workshop
Implications of Empire Int.’s chosen strategic direction
Meeting full potential in the core business
Market Position
Capacity expansion opportunity
Portion prior to 2022
Portion attractive to Empire International
This is a critical week with 4 important updates. 1 Monday: the Empire International CEO and his core team will take part in a workshop to affirm the strategy. 2 Tuesday: the affirmed strategy will be submitted to Empire Energy for the parent company’s business planning cycle. 3 Thursday: is the presentation to the Empire Int. CEO and his direct team / slightly amended version sent to Empire Energy board
How should this crucial workshop
be planned?
Applying the principles to the business
Portion Empire International can currently do
Breaking down the Design-Build-Operate-Main-Refurb. Market
Meeting full potential in the core business -recommendations
Support Services Assumptions to calculate capital requirements to capitalize the division
Forecasted revenue and financials
What should my pre-presentation
strategy be?
Why are case studies so
important for CEOs?
Would you like to recap the key insights from week 12?
Do I require a decision from this workshop?
Strategy Training Corporate & BU Strategy: Power Sector
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Capital requirements
Sensitivity Analyses
Internationalization Assumptions
Capital requirements
Non-core portfolio Visioning workshop
Disposal process and estimated proceeds
Assumptions
Capital RequirementsHead office
Implications for implementation
Next Steps
Adjust pack based on workshop and submit to Holdco.
Funding implications
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Week 13: 15 July – 21 JulyTuesday: Empire Energy Input
1 day
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Setting the context
Strategy Recommendations
Business Case Summary
Meeting full potential in the core?
Implications for the internationalization strategy
Implications for the non-core businesses
What should be the strategy for this submission?
Organization Design
Communication & Mobilization
Implementing the Transformation
Management Skills Analyses & Culture Survey
The Way Forward
What are the worst mistakes to
make in this submission?
Would you like to recap the key insights from the workshop?
Do I require a decision from this submission?
Strategy Training Corporate & BU Strategy: Power Sector
Objectives
Recommendations for core business
Business case for the core business recommendations
Business case for the non-core business recommendations
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Week 13: 15 July – 21 JulyThursday: Empire Int. CEO Presentation
1 day
PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Agenda
Today’s Objectives
Where Empire International started
Context to forming Empire International
How much of the workshop / CEO
material should be repeated?
Context to the study
Do the objectives differ from the
previous updates?
Should anything be submitted
before the presentation?
Country in Decline
A scorecard of Empire International’s performance
New context
Build opportunity in our backyard
Country is Resurgent
How is Empire International positioned for a resurgent country?
Visioning workshop to agree Empire International future
Principles of the new Empire International
Corporate strategy Recommendations
Responding to a resurgent country
Case study of ABB
Only focus on core businesses
EI will invest in segments it can take a leadership role
Would you like to recap the key insights from the CEO update?
Do I require a decision from this meeting?
Strategy Training Corporate & BU Strategy: Power Sector
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Gx, Tx and Dx will be the core
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Organization design to support the corporate strategy
Macro-structure
Micro-structure
Organizational design principles
Financial strategy to support the corporate strategy
Key principles
Investment matrix
Disposal plan
The management challenge
Immediate challenges to the business
Implementing the transformation
PHASE ONE
In Phase 1, the 3.5 month study above, the consulting team recommended Empire International be folded back into Empire Energy as a new division. EI should only focus on the Gx, Tx and Dx value chain related to construction, maintenance and refurbishment and exit all non-core businesses. Empire International was the wholly-owned subsidiary of Empire Energy created to invest in non-regulated businesses in Southern Europe, North Africa and the Middle East.
Since Empire Int.’s founding, the core/local market has undergone a shift where there is renewed focus on expanding and maintaining the crumbling and outdated infrastructure base to meet surging electricity demand. Unless Empire Energy focuses on meeting rapidly growing energy demand, electricity blackouts remain a real threat which will impact the countries productivity and attractiveness for FDI. Yet Empire Energy does not have the skills to do this work. Empire Int. possesses many of those skills, and even those need to be significantly improved.
Therefore, Empire Int. will become the in-house construction arm of Empire Energy and build new power stations and transmission lines, and prepare for a smart-grid increasingly powered by wind, solar and other renewables.
PHASE TWO
Yet, the Phase 1 study also indicated that Empire Int. is woefully unprepared to undertake massive construction work in the local generation, transmission and smart grid sectors. Empire Int. does not have many core skills since it has not built any infrastructure in over 20 years within the local market. During that time, technology, legislation and manpower has changed. Finding skilled engineers will by itself be a major challenge.
Phase 2 of the study will see the team refining the business model for Empire Int. so that it may successfully take on its new role within Empire Energy: essentially as a construction, maintenance and refurbishment division dedicated to the electricity sector.
In Phase 2, a 6 month phase, the consulting team will begin implementing the asset divestiture program and examine the best way to organize and prepare Empire International for its new build mandate.
Phase 2 consists of 7 major work streams: governance and management processes, strategy realization, organization and process alignment, human asset optimization, systems alignment, transformation alignment and project management.
Tell us what you would like to see in phase 2 in the comments below.
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PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Strategy Training Corporate & BU Strategy: Power Sector
Ready to understand the business case and value analyses better?
Irrespective of the strategy recommended, the valuation of Empire Int. should increase.
This stream focuses on three areas. First, it ensures the recommendations leads to an increase in value of Empire Int.
Second, it measures the increase in value. Third, it provides specific guidance to bank the increase during implementation.
Build the strategy decision tree
Build the financial decision tree
Categorization 1 of opportunities
Categorization 2 of opportunities
Draft validated assumptions
Run new valuation and cash needs analyses
Present key findings from the business case
Rerun valuation with validated assumptions
View the single most important
exhibit produced in this stream?
1-page summary of findings
Use the proposal to determine the stream objective
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Prioritize the branches
Build hypotheses for the prioritized branches
Merge hypotheses and test for overlap
Prioritize the branches
Build hypotheses for the prioritized branches
Plan workshop to verify drivers of value and find opportunities
Complete top-down valuation of business
Workshop agenda and slides
How does the value analyses fit into the entire study?
Create the methodology for the business case x 3
EV EVAPrimary analyses EVA growth mapping & Short-term sustainability: EVA vs. FCF
How does this stream link to the corporate strategy stream?
How does this stream link to the BU strategy stream?
Complete the critical top-down financial analyses of Empire Int.
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Sensitivity analyses Risks analysesAsset-disposal analyses Non-core asset disposal
Ratio & Overhead analyses
Seasonality analysesSecondary analyses Options pricing analyses
Why are there no implementation recommendations
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PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Strategy Training Corporate & BU Strategy: Power Sector
Ready to understand the business unit strategy stream?
Business unit strategy always supports the corporate strategy.
This implies this stream always follows the corporate strategy. The ultimate objective is about determining the correct portfolio of business units and their management / structure to achieve the corporate strategy.
ID criteria for BU categorization
Review the hypotheses of the corporate strategy stream
Develop hypotheses on high level criteria
Validate criteria with corporate strategy stream
Use the proposal to determine the stream objective
Develop understanding of regulatory environment
Define measures/elements for criteria
Define information requirements for criteria
Design output templates
Design data request templates
Identify sources of information
Set up meetings / workshops to collect data
Consolidate analyses Review complete data templates
Populate output templates
Validate with broader team
How does the BU strategy fit into the entire study?
Provide input to corporate strategy visioning workshop
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Develop high level recommendations
What is the strategic fit of the BU’s?
What are the market positions of each BU?
Consolidated insights and strategic options
Implementation options
View the detailed analyses pack per BU
Property management BU
Engineering BU
Primary Energy BU
Fleet Management BU
Power Generation Services
Power Distribution Services
Bulk Water Services
Bulk & Tailings
Materials
Civil Infrastructure
Electrical Infrastructure
Waste & Effluents BU
Commercial BU
Air Fleet BU
Satellite and Navigations BU
Liquid Fuels Alternative Energy BU
IT BU
IT equity investments BU
ASP BU
eBPO
Telecoms BU
Technology Services BU
TS Engineering JV
TS Energy Software JV
TS Energy Efficiency JV
TS Other JV’s
What are EI’s strengths across the value chain?
What is the key input data used from the value analyses stream?
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PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Strategy Training Corporate & BU Strategy: Power Sector
Ready to understand the balanced scorecard (BSC) stream?
BSC is the client’s chosen method of implementing the strategy.
The BSC is being designed at a high level as a guide for the implementation phase. The BSC will be validated and adjusted during the implementation phase as the roles for the executives are finalized. Why is BSC training so
important for the client?
Why develop the BSC so far ahead of the implementation phase?
How does this BSC-lite stream differ from an in-depth-phase?
Objectives of the training
Overview of the BSC
Using RAD charts for the BSC
Using a PDR process to track BSC
Overview of the BMP process
BSC approach to be used in this study
Review the scorecards produced
Level 1 – CEO scorecard
Level 2 – CFO scorecard
Level 2 – Division Pillar 1 scorecard
Level 2 – Division Pillar 2 scorecard
Level 2 – Division Pillar 3 scorecard
Level 3 – Corporate Finance scorecard
Level 3 – Finance & Control scorecard
Level 3 – Engineering scorecard
How did we use these scorecards in the study
What are the objectives of the BSC stream?
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PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Strategy Training Corporate & BU Strategy: Power Sector
Ready to understand the organizational design (OD) stream?
The team uses a deeply analytic process to design the macro-structure.
OD is led by the strategy team who use a 6-step approach to design an organizational structure which supports and enables the new corporate strategy of the client. This is the most analytic approach possible to organizational design.
View Step 1 of the OD approach: the purpose
Why is only the macro-structure being developed?
How does the OD stream fit into the entire study?
View Step 3 of the OD approach: is it practical
View Step 2 of the OD approach: the big picture
View Step 5 of the OD approach: institutionalizing changes
View Step 4 of the OD approach: implementation planning
View Step 6 of the OD approach: operationalizing changes
Why is this stream led by strategists vs. OD specialists?
View the OD stream planning & initial hypotheses
OD Workshop 1: Customer Value Chain Analyses
OD Workshop 2: Support Services Design Options
Role of corporate finance
OD Workshop 2: Slides and format from the workshop
OD Workshop 1: OutputOD Workshop 1: Slides and format from the workshop
Objectives and setting expectations
OD Workshop 2: Output
OD Workshop 3: Options for overall macro structure
Resource allocation across Empire Int.
Critical concerns identified in 1st
workshop
Guidelines for this work
Step 1: Establish data points and boundaries
Step 3: Guide to selecting the “best”organizational structure
Step 2: Test model against data points and iterate process
Step 2: Select the whole team for each option
Step 1: Select advocates for each option
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Step 3: Analyze each option in 4 steps
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Step 4: Test for implementation
Step 5: Select the whole team for each option
Step 6: Check PSTB differences
Step 7: Repeat steps 3 to 6 for remaining groups
Step 8: Review scores and compare options
Step 9: Complete the sanity check
OD Workshop 3: Output
Develop role profiles for key executive positions
Is this the final organizational structure?
Implementation guidelines for Phase 2
Level 1 roles
View CEO profile
Validate with corporate strategy stream
Level 2 roles
View CFO profile
View Strategy Executive profile
View Globalization Leader profile
View Legal & Compliance profile
View Business Development Executive profile
Level 3 roles
View Market Intelligence Executive profile
View Managing Director Executive profile
View Operations Manager Executive profile
View Regional Business Development Executive profile
View Support Services Executive profile
View HR Executive profile
Prepare email to announce interim roles
Prepare process to select interim executives
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PROJECT MANAGEMENT CORP. STRATEGY BU STRATEGY BUSINESS CASE SKILLS ANALYSES ORG. DESIGN BALANCED SCORECARD
Strategy Training Corporate & BU Strategy: Power Sector
Ready to understand the management skills analyses (MSA) stream?
The MSA team is testing management for two skills.
First, does executive and senior management have the skills required to lead the organization through the difficult changes required.
Two, does executive and senior management have the skills to manage the organization post changes.
View the stream charter, timeline and planning documents
How does the MSA stream fit into the entire study?
Why is this stream led by specialists vs. general strategists
View the diagnostic tests to assess management skills
Validate the approach against the balanced scorecard
Findings for executive management
Findings for operational management
Combined findings for Empire International
View the implementation recommendations
Review the sample size and 3 analyses required per management level
How does the analyses change if management refuses to cooperate?
Launch the development assessment center for managers
Review the performance of the development assessment centers
Create a generic profile for management leading the transformation
View the initial findings
Review the findings for the stream
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